A budget has finally been passed and as I’ve been forecasting for months now, It was spending increases across the board as the Democrats would concede expanded military spending in exchange for increases on social programs. I suggested it would likely take the form of dollar for dollar spending, it was close- about $165 billion would go to the Pentagon and $131 billion to non-defense programs.
The debt ceiling was raised to accommodate this and funding for the budget was extended to March, when someone is going to have to go ahead and author the omnibus spending package that will see us deeper and deeper in the hole through debt financing. Add to this the idea of an infrastructure bill that will add untold more to the national debt and we’re looking at serious serious financial problems in 2019.
All of this was so unnecessary. Had we started with an infrastructure bill in 2017 and then modest, reasonable tax reform, we’d be in a different world. But nah. We didn’t need to supercharge the economy, it was already supercharged. We’re already operating at capacity, there aren’t any more people to work on more projects and there aren’t any more consumers to buy any increased production. This is it.
Now if we wanted to open up the floodgates to immigration, that would help…but the racists in the White House have different ideas about immigration, don’t they. They want to cut legal immigration by 44%. Or say if we wanted to explore new trade deals with foreign nations and open up new international markets, that would help, but the administration is doing exactly the opposite and removing the US from trade deals.
Fucking insane. So even more debt with no offsetting income except make believe, wishful-thinking, voodoo economics, while our main financial supporter in China, is now downgrading the credit-worthiness of that very debt.
“In its latest reminder that China is a (for now) happy holder of some $1.2 trillion in US Treasurys, Chinese credit rating agency Dagong downgraded US sovereign ratings from A- to BBB+ overnight, citing “deficiencies in US political ecology” and tax cuts that “directly reduce the federal government’s sources of debt repayment” weakening the base of the government’s debt repayment.
Projecting US funding needs in the coming years, Dagong said a deterioration in the government’s fiscal revenue-to-debt ratio to 12.1% in 2022 from 14.9% and 14.2% in 2018 and 2019, respectively, would demand frequent increases in the government’s debt ceiling.
“The virtual solvency of the federal government would be likely to become the detonator of the next financial crisis,” the Chinese ratings firm said.”
We could invest in future technologies for domestic and foreign sales, but nah. Let’s go ahead and try to push coal and hey..didn’t the Chinese just buy a metric shitton of coal? Yeah they did because fucking Ukraine is in political turmoil so they weren’t producing it and the Chinese needed some useful idiots, any idiots to back-fill their temporary need for coal as they exited fossil fuel production for the more lucrative and forward looking renewable energies market. What fucking idiots could they find to do the dirty work? Oh, the US!!! yeah, those fucking idiots.
What the US is doing, is planning to rip up our lands and coastlines for more fossil fuel production so the oil companies can make some righteous bucks and simultaneously fucking destroy the solar energy economy in the US. GREAT PLAN!
This is so idiotic. The Trump administration isn’t burning the candle at both ends so much as it is throwing a glob of wax into a raging inferno. The Federal Reserve is going to have to fight against the administrations policies and attempt to cool down the economy by increasing rates repeatedly and we’re looking at hardcore inflation for 2019 regardless.
I can’t highlight how idiotic this Administration’s policies are and how foolish Congress is and we saw this all coming a long long way off.
On a not at all happier note, Rachel Brand is stepping down from the DOJ for some super-duper, spectacular, unnamed private sector job. She could be a floor manager at a Ruby Tuesday’s, and as shitty as that job is, it’s probably a hella lot less stressful than working as the #3 in the DOJ. I don’t think we need to read into this. I’d leave too, wouldn’t you?
Does this look like the picture of a happy lady?